White says there has been an “insatiable appetite in both Hong Kong and China for the iPad mini, leading to further supply constraints in recent days.”

He also noted that there have been shortages at the Apple store in mainland as well as complete sell-outs at the location in Hong Kong. What does all of this mean?

It means investors have overreacted to the recent declines in the stock. With shares having dropped as much as 30% from its all-time high of $705, the company is suddenly perceived unable to innovate and being “left behind” by Google and Amazon. But that's incorrect. This also dispels the notion of “cannibalization,” a term that is misunderstood by 80% of the people that uses it.

The current success of the iPad mini proves that even though Apple still enjoys a meaningful lead in the higher-end tablet market, the company does not plan to surrender any portion of mobility – regardless of the risk. Though the competition from the likes of Microsoft and Research in Motion might have gained some ground, but there’s still considerable ground to make up.

In afternoon session shares of Apple were down $3.17, or 0.62% to $511.89 on very light trading.